Table 9-4 Table 9-4 Shows the Short-Run Cost Data of a Perfectly

question 268

Multiple Choice

Table 9-4
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \begin{array}{c}\text { Average } \\\text { Fixed Cost }\end{array} & \begin{array}{c}\text { Average } \\\text { Variable Cost }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} \\\hline 20 & \$ 40 & \$ 18 & \$ 18 \\\hline 40 & 20 & 14 & 10 \\\hline 60 & 13.1 & 16 & 20 \\\hline 80 & 10 & 22 & 40 \\\hline 100 & 8 & 30 & 62 \\\hline 120 & 6.61 & 40 & 90 \\\hline\end{array}$ Table 9-4 shows the short-run cost data of a perfectly competitive firm. Assume that output can only be increased in batches of 20 units.
-Refer to Table 9-4.If the market price is $45 the firm will produce

• A) 60 units.
• B) 80 units.
• C) 100 units.
• D) 120 units.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.

Process Operations

Activities involved in the transformation of raw materials into finished products via chemical, physical, or other methods within industrial facilities.

Managerial Accounting Report

Comprehensive reports generated through managerial accounting processes, supporting detailed financial analysis and decision-making within an organization.

Production Department

The division within a business that is responsible for the manufacture of goods.